Posted on 03/10/2009 1:03:22 PM PDT by Ernest_at_the_Beach
WASHINGTON (MarketWatch) -- Federal Reserve Board Chairman Ben Bernanke stressed Tuesday that major financial institutions would not be allowed to fail given the fragile state of financial markets and the global economy.
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'It was the...collapse of banks and other institutions in late 1930 and early 1931 that made the Great Depression great.'
— Fed Chairman Ben Bernanke
(Excerpt) Read more at marketwatch.com ...
We are so screwed.
Related thread:
Some banks should be allowed to fail, say two top Republicans [McCain, Shelby] [Citigroup]
Its his way of saying more money needed for the banks. I can’t see how Citigroup had the best quarter since mid 2007 after begging 2 weeks ago for bailout money.
Whats frustrating about the market is that now it reacts almost exclusively to what these clowns in DC say and do!
It’s all such a putrid rat nested state of affairs.
Bernanke has decided that we the taxpayer must be crucified on a cross made of credit default swaps.
Bingo. Could not have said it better.
Mr. Bernake is flat out wrong. It was not THE failure of the banks that made the Great Depression. It was a combination of factors, of which government interference, was a big contributor.
Interesting article here: http://americanhistory.about.com/b/2008/12/14/top-causes-of-the-great-depression.htm
The reason behind the No Bank Must Fail is derivatives claims are above all bond holders and bankruptcy filings.
Either Citibank is opn the verge of collapse or it’s just had a great quarter. Which is it?
Before the Great Depression, there was the Agriculture Depression of 1920. The same scenario could be playing out now.
http://www.modernhistoryproject.org/mhp/ArticleDisplay.php?Article=SecretsCh09#Rural
They love it, they hang on to our trough 'till we shoot them off.
It’s the difference btween the balance sheet and the income statement.
Balance sheet = are assets are worthless
Income statement = our earnings are good.
It’s kind of like getting a bigger comission check just after finding out your house is worth a third what you paid for it.
Another suspicionless clown in charge of the Fed. And he can’t help parading his ignorance for all to see! Yeah, those declining markets are a real poser, huh?
Yup... If we had let the big banks fail, I wonder how quickly the healthy smaller banks would have filled the void. Pretty quickly, I think. I mean, imagine if the healthy small banks had received all of the government bailout money, and not one cent to the big banks. I see where Bernanke is coming from, but I think he is wrong.
Then again, I could be 100% wrong because I have no clue how letting all the big banks fail would affect their CDS expsure. Would this have lead to $50 Trillion called in overnight on CDSs? I just have no clue.
So maybe he right. This thing is so damn complicated, I just don’t know.
Why are they STILL allowing CDSs to be written. I’m baffled.
I don’t see how ANY company can say they MADE money when they OWE US BILLIONS!
(string of very bad words>>>>)
AIG is going for double or nothing?
I kid.
To the tune of about two trillion and change.
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